[With stablecoin, my position on blockchains has changed. The following is why everyone with more than $600 in savings should be subscribing to both The Wall Street Journal and to Barron’s. Bill]
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William
Inside the Coming War Over Digital Currencies—and What It Means for Your Money
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Updated September 18, 2021 / Original September 17, 2021
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The war over money is heating up: For the first time in more than a century, the dollar’s supremacy is being challenged. The rise of cryptocurrencies and “stablecoins” has spurred a rethinking of what a currency is, who regulates it, and what it means when it’s no longer controlled by a national government. The dollar itself may be getting an overhaul, transformed into a digital currency that can travel instantly around the world, holding up against Bitcoin or any other token.
The old battle lines between national currencies are being redrawn by an onslaught of crypto insurgents. These privately issued currencies are fragmenting monetary systems, banking, and payments. The landscape calls to mind the “wildcat” money era of the mid-1800s, when a scrum of banks supplied their own notes—prompting the Federal Reserve to establish a national currency. Commerce doesn’t run as efficiently without a “no questions asked” currency, and governments risk losing control over fiscal and monetary policies if multiple currencies vie for economic activity.
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Illustration by Glenn Harvey
What kind of upheaval will the new currencies wreak? No one knows. And there are plenty of legitimate use-cases for cryptos and applications built on top of blockchain networks. But the technology is so disruptive that it’s triggering calls for a cascade of new regulations, and it’s spurring governments around the world to think about digitizing their currencies, at least partly to remain relevant and maintain control over their economic interests. The Fed itself is expected to weigh in with its own report in coming days.
“The advent of digital currencies may allow people and businesses to get around banks,” says Thomas Hoenig, a former president of the Federal Reserve Bank of Kansas City. “If cryptos become a substitute for the dollar, they could create a separate money environment that would make monetary policies more difficult to implement.”
Cryptos are now worth $2.1 trillion, doubling in value this year alone. Bitcoin, worth nearly $900 billion, recently became legal tender in El Salvador—a controversial monetary shift in the country, but one that may pave a path for other developing nations. Capital is flooding into companies that are building everything from trading platforms to exchanges for trading new digital assets like non-fungible tokens, or NFTs. Investors are also trading tokens on decentralized exchanges like Uniswap, and they’re earning high yields by “staking” their tokens to network operators.
RELATED MARKET DATA
Cryptos and other tokens aren’t (yet) close to denting the $19.4 trillion U.S. money supply or the 50% of international trade that’s invoiced in dollars. One measure of the dollar’s hegemony—its share of central bank reserves—has been declining for 25 years, but at 60% it remains three times that of its closest rival, the euro. Vast markets of global commodities are priced in the dollar. Trillions of dollars in sovereign and commercial debt are pegged to the “risk free” rate of Treasuries.
But challenges to the dollar posed by blockchain technologies aren’t so easy to dismiss.
Cryptos, stablecoins and NFTs are becoming the native tokens of gaming and e-commerce platforms. Virtual-reality platforms are being designed to incorporate NFTs or other private currencies. As economic activity shifts to these walled gardens, banks and government-backed money could wind up on the outskirts.
The Trillion Dollar ClubCryptocurrencies have surged in value, led by Bitcoin and EthereumMarket Value of CryptosSource: CoinMarketCap
billionOct. 2019Sept.05001000150020002500$3000
Challenging the Incumbents
Big money is at stake, especially for banks and other companies that effectively charge “rents” for moving dollars around. North American banks, card networks, and nonbank “fintechs” earn huge sums for payment and credit-card services—$500 billion a year, according to data from consultancy McKinsey. That amounts to an estimated 2% toll on U.S. gross domestic product—much of it in credit card fees.
Many banks and financial companies, including Visa (ticker: V) and JPMorgan Chase (JPM), are working to integrate cryptos and stablecoins, aiming to capture fees on brokerage, custodial, and payment services. But they face technologies that threaten their revenues—and, perhaps more important, access to data.
Solana, for instance, is a relative newcomer in crypto. Developed by a former software engineer at Qualcomm, the network claims to handle 65,000 transactions per second at a cost of $0.00025 per transaction, making it far faster and cheaper than bigger rivals like Ethereum. It’s taking off for stablecoins and NFTs—new digital playthings for art, video, and music. Solana’s blockchain network is also attracting high-frequency trading firms that see it as a platform for ultrafast data feeds and trading applications for cryptos, stocks, and other securities.
BTIG analyst Mark Palmer calls Solana the “biggest blockchain breakout of 2021,” noting that it’s powering a much-anticipated “metaverse” game called Star Atlas that uses NFTs for in-game assets. “The speed that Solana’s architecture facilitates is a literal game-changer in the NFT gaming world,” he wrote in a recent report. The network crashed this past week as usage surged, pulling its token down. But its fall may also reflect some profit-taking after a 9,166% rally this year, pushing the token from $1.50 to $139, giving it a $41 billion market value.
The Battle for a Digital Dollar
One of the biggest financial-policy battles that’s shaping up in Washington is over digitizing the dollar—turning it into a token that may be issued directly to consumers by the central bank. A much-anticipated report is expected soon from the Fed, outlining its perspective on a central-bank digital currency, or CBDC. Other countries, led by China, have already launched CBDCs in pilot programs, putting pressure on the Fed to develop a rival.
A digital dollar could take many forms. The basic idea is that the central bank would issue a new digital instrument for transactions and deposits, alongside physical cash or entries on a bank ledger (essentially deposits). Payments could settle in real time, proponents argue, and fees could fall sharply since the Fed doesn’t have a profit incentive. That could be a huge win for the 6% of the population that’s “unbanked” and pays steep fees for check-cashing. People sending money overseas could also pay much lower fees for “remittances,” cutting out middlemen like Western Union (WU) and MoneyGram.
International pressure is building as China and other countries take the lead in CBDCs. “The time has passed for central banks to get going,” said Benoît Coeuré, head of innovation at the Bank for International Settlements, in a speech in September. “We should roll up our sleeves and accelerate our work on the nitty-gritty of CBDC design.”
Fed officials seem split on the idea, however, let alone the specifics. Governor Lael Brainard, who may be in line for Chairman Jerome Powell’s job next year, has indicated support for a CBDC. But governor Christopher Waller is a skeptic, describing a digital dollar as a “solution in search of a problem.” As he sees it, commercial banks and the Fed are already developing real-time settlement; stablecoins may put pressure on banking fees, he argues, and most of the unbanked don’t even want accounts, according to surveys. “The government should compete with the private sector only to address market failures…and I don’t think that CBDCs are the case for making an exception,” he said in a speech last month.
Politicians, not Fed officials, are likely to have the final word. A bill backed by Sen. Sherrod Brown (D., Ohio) envisions the Fed offering “digital dollar wallets.” Commercial banks would maintain the wallets, entitling owners to a share of the bank’s reserves held at the Fed. For consumers without access to branches, he sees the Postal Service turning into a digital-dollar bank.
None of this appeals to bankers, of course, who worry that the Fed could siphon away their deposits and undermine lending. “The drawbacks appear to be more pronounced than the benefits, at least in the U.S.,” says Rob Morgan, a senior vice president with the American Bankers Association.
JPMorgan is calling for “minimally invasive CBDCs,” according to a recent report by Joshua Younger, head of U.S. fixed-income strategy. CBDC deposits that are limited to $2,500 would mitigate the potential for the Fed to “cannibalize” deposits, he argues. He also says that U.S. banks are already “partially nationalized,” with 15% of their assets held as Fed reserves and Treasury securities, levels that may increase if the Fed got into commercial banking.
Taming the Crypto Wild West
Regulators aren’t sitting idly as digital currencies plant roots. Federal and state agencies are working on rules to keep tabs on the industry. Gary Gensler, the new chairman of the Securities and Exchange Commission, laid out an expansive agenda to regulate crypto tokens, trading, and lending platforms in a Senate hearing this past week. “Large parts of the field of crypto are sitting astride of—not operating within—regulatory frameworks,” he said. Automated exchanges could be in for more scrutiny, along with lending platforms like BlockFi, where investors can earn high yields on crypto deposits.
Congress sees plenty of opportunity to raise revenue by taxing crypto. Democrats in the House have included “digital assets” in their $3.5 trillion reconciliation bill, including a provision that would subject cryptos to “wash sale” rules, which prevent investors from claiming a tax loss if they buy the same security within 30 days (before or after) of the sale. That measure alone could raise an estimated $16 billion over a decade.
Still, it won’t be easy for regulators to tax or police the entire industry. Crypto brokerages outside the U.S. handle much of the trading volume. Exchanges like Uniswap use protocols and “smart contracts” to process transactions, operating independently of any centralized entity like a bank or brokerage firm. “The underlying protocol is operating on its own, and users can still trade the assets, irrespective of the SEC,” says Anthony Georgiades, a crypto investor with Innovating Capital. “It’s sufficiently decentralized so that even if they try to delist the assets, they couldn’t.”
Tokenizing the WorldThe number of cryptos has jumped almost140% in the past two years.Source: CoinMarketCapNote: In Oct. 2020 CoinMarketCap removedinactive cryptocurrencies from the totals.
2020’21200030004000500060007000
Washington still can’t agree on whether to classify cryptos as a currency, security, or commodity. The Internal Revenue Service calls cryptos “property,” while the Commodity Futures Trading Commission has oversight over the crypto futures market, and a patchwork of agencies oversee the banks and exchanges.
A few states aren’t waiting around for more federal rules. BlockFi is in trouble with regulators in New Jersey and Texas, states where it could soon be illegal for residents to open an account with the company. BlockFi CEO Zac Prince says uniform federal banking rules are needed. “It’s gonna come down to federal regulators…creating a path for this type of activity to happen,” he said at a conference this past week.
Stablecoins pose perhaps the biggest regulatory conundrum. The tokens have a fixed value of $1, typically pegged to the dollar. More than $110 billion are in circulation, primarily in Tether and USD Coin. Investors use the coins as dollar substitutes to transact on exchanges; they’re also gaining traction for international payments and peer-to-peer, or P2P, transactions.
A game-changing “stablecoin” may be coming from Diem, a consortium of 26 companies, originally conceived by Facebook (FB). Diem is trying to launch a “regulatory friendly” version, says Christian Catalini, chief economist of the Diem Association. Its underlying network, backed by companies including Uber Technologies (UBER), Coinbase Global (COIN), and Spotify Technology (SPOT), will levy fees expected to be less than 0.10% per transaction, far below what banks and card networks now charge.
Diem could be a blockbuster. The token could quickly gain traction for things like Uber fares, Gucci bags on Farfetch (FTCH), or subscriptions on Spotify—cutting out payment middlemen with lower transaction fees. The network is also designed for P2P transactions, including remittances, and the underlying blockchain technology could move programmable digital assets in the future. The Diem coin itself, however, might be short-lived if a digital dollar launches. “We’ve committed to phasing out the token when there is a digital dollar,” Catalini says.
Diem has pledged to hold high-quality assets as reserves for its coins, backed at least one-to-one by cash or Treasuries. It might not have much choice: Regulators are starting to view stablecoins as a source of financial instability, and they may be close to issuing new rules on capital and reserve requirements for issuers.
The concern is that coin issuers aren’t backing their tokens with 100% cash reserves, using proxies like commercial paper, bank “repo” agreements, and other securities. That might be fine in normal market conditions, but it could be destabilizing in a crisis. Money-market funds have experienced runs that spilled over into other areas, prompting the Fed to stabilize the market, most recently in March 2020. “It’s a central problem that the Fed worries about from a stability point,” says Morgan Ricks, a law professor at Vanderbilt University and former Treasury official.
Tether, the largest stablecoin, has run into legal trouble over its reserves, agreeing last February to more disclosure in a deal with the New York attorney general. But its reserve composition remains opaque. Tether, backed by the Bitfinex exchange, holds only 3.9% of the coin’s reserves in cash and 2.9% in T-bills, according to its latest disclosure, with 65% in commercial paper. Tether says its tokens are “always 100% backed by our reserves.”
The Treasury Department recently convened a task force to develop a framework for regulating stablecoins. Some leading economists say it’s overdue. “Policy makers may view stablecoins as an up-and-coming financial innovation that does not pose any systemic risk,” wrote Yale University economist Gary Gorton in a recent paper co-authored with a Fed attorney, Jeffery Zhang. “That would be a mistake because this is precisely when policy makers need to act.”
The Dollar Won’t Go Away
The dollar won’t go down easily. It has deflected multiple threats since President Richard Nixon ended its peg to gold in 1971, turning it into a free-floating “fiat” currency. A bout of inflation in the 1970s, the rise of the Japanese yen in the 1980s, and the euro’s ascent in the early 2000s all failed to knock it down.
A common marketing case for Bitcoin, the largest crypto, is that it’s “digital gold” with a fixed supply of 21 million tokens; by design, it can’t be increased, unlike fiat currencies that may be depreciated by governments for political or economic gains. Central banks have embarked on a money-printing spree—the Fed’s balance sheet has ballooned to $8.3 trillion from $1 trillion in 2008. Crypto backers argue that the dollar’s purchasing power will diminish due to inflationary forces tolerated by central banks, while cryptos will hold more of their value.
Taking a CutBanks and payment companies reap trillions of dollars for moving money aroundGlobal Payments RevenueSource: McKinsey
trillionEstimateAsia-PacificNorth AmericaEMEALatin America20102014201820192020E0.00.51.01.52.0$2.5
Yet for all the carping about currency “debasement,” or an erosion of purchasing power in the dollar, the economics are far more complex. Inflation hasn’t proved deeply problematic in North America since the early 1980s. Before the pandemic, it was so low that policy makers worried about deflation. Rising labor costs and global supply-chain disruptions pose near-term inflationary threats, but their persistence isn’t assured. The forces that have kept a lid on inflation—including aging populations in developed economies and productivity gains from technology—aren’t going away.
History is also on the dollar’s side in the sense that governments have never allowed rival currencies to usurp their authority. Technologies make the job tougher but not insurmountable, and the greater the success of currencies like Bitcoin, the more governments may try to kill it.
What It Means for Investors
What’s the impact for investors in crypto-infrastructure stocks and currencies? For now, not much. Crypto stocks and prices for digital currencies have climbed for months, despite tighter regulatory scrutiny. Capital is flooding into the industry as use-cases for cryptos, stablecoins, and decentralized-finance, or DeFi, networks expand. New rules will take months or years to be written and implemented by regulatory agencies. A digital dollar could become a partisan battle that gets bogged down in Congress.
Clarity from regulators may be welcomed, since they could open the floodgates to investment products and services, expanding the market with advisors and institutional fund managers that oversee trillions of dollars in global assets. Banks also want a level playing field to cut down on “regulatory arbitrage” that may now give pure-play crypto companies an advantage.
The crypto industry, for its part, is also becoming a lobbying force. The industry exerted its influence in August as lawmakers added tax-reporting requirements on crypto companies to the Senate infrastructure bill. The lobbying blitz failed, but the battle isn’t over—it will probably shift to regulatory agencies.
As for the dollar, the very currencies that are nipping at its heels could help preserve it. Cryptos and other tokens haven’t been tested in a crisis when investors dump anything with a whiff of risk. The diciest currencies fall the hardest during panics, and cryptos could follow precedent. “If there is a crisis, all these parallel currencies will take flight into the sovereign,” predicts Hoenig. Digital or not, the dollar will live to fight another day.
Write to Daren Fonda at daren.fonda@barrons.com
[Explains why gold, silver, and copper haven’t risen as they should. With stablecoins not being supported by trimetalicism or necessary fungible commodities, but by debt and tradable assets, the implication is a currency bubble that may lead to a bust, as all bubbles do, and market downturn, as these assets are sold to redeem stablecoins, but the attack on liberty and freedom, as shown by the Harris/Biden cabal’s pushing the IRS to have complete access to all bank accounts over $600 w/o the restrictions of the Vth Amendment or Probable Cause will lead to a Chinese style of global tyranny. Consider, we will all live in the world of Terese Xu of Beijing (WSJ Weekend 9/18-19-2021 p A8). And, of those who died incarcerated in their apartments in Wuhan to prevent the spread of the PLA-Fauci COVID bio-weapon.
Justplainbill]





















































Abigail Shrier is a journalist and author. She received her A.B. from Columbia College, where she was a Euretta J. Kellett Fellow; her B.Phil. from the University of Oxford; and her J.D. from Yale Law School, where she was a Coker Fellow. A member of the Board of Advisors of the Foundation Against Intolerance and Racism, she has written for numerous publications, including City Journal, Newsweek, RealClearPolitics, The Federalist, the New York Post, and The Wall Street Journal. She is the author of Irreversible Damage: The Transgender Craze Seducing Our Daughters.
Epitaph for the ‘War on Terror’, by Angelo Codevilla
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Epitaph for the ‘War on Terror’
Avenging 9/11 and preventing its recurrence was justification for putting enormous effort and money into unrelated or even counterproductive activities the ruling class sold to us as antiterrorism. By Angelo Codevilla
September 16, 2021
Twenty years after the U.S. government declared war on terrorism, it consummated its own defeat in Kabul and Washington, in a manner foreseeable, foreseen, and foreshadowed in 9/11’s immediate aftermath. Fixation on itself and unseriousness about war are the twin habits of heart and mind that disposed the ruling class to defeat. The practical explanation for why and how it accepted defeat is found in the overriding interest each part of the ruling class has in doing what it wants to do.
On the night of September 11, 2001, Muslim governments strictly forbade public celebrations of the carnage. The Palestinian Authority, anticipating that outraged Americans would destroy them to avenge the day’s events, even called the attacks al nachba—“the disaster.” But as the U.S. ruling class made clear that it was accepting defeat, the Muslim world’s media and streets celebrated.
Two decades later, after that defeat’s logic had worked its way through and transformed American life, and as the government’s self-humiliating exit from Afghanistan consummated it, much of mankind followed Muslim crowds in celebrating—including prominent Americans.
At the “War On Terror’s” end as at its beginning, the same authoritative Americans—including Republican President George W. Bush as well as leading Democrats—blamed fellow Americans at least as much as foreign powers for it.
Bush’s first post 9/11 act (other than to sequester information about Saudi Arabia and Iraq’s role in terrorism) was to declare Islam the “religion of peace” and to declare illegitimate any American who thought otherwise. Fast forward to September 11, 2021 and Bush said that these Americans, many of whom had gone to war for him, losing life or limb, are “children of the same foul spirit, and it is our continuing duty to confront them.”
Similarly, in Joe Biden’s view the American people had shown “Fear and resentment of . . . true and faithful followers of a peaceful religion.” He called them “the dark forces of human nature.”
Shirking the Reality of War To Promote Ruling Class Interests
Progressive thought had always looked away from the reality of war as the midwife of nations and the gravedigger of decadences. Kissinger wrote that America should only fight “wars that it could afford to lose”—as if there were such things. Thus it blurred distinctions between war and peace. Intellectually crippled in this way, U.S. military forces therefore have not aimed for victory. about:blankabout:blank
Instead and because of this, military operations have been planned and executed on the basis of what will fulfill our foreign policy establishment’s personal and institutional interests, as well as its evolving ideological criteria. Contact with reality, having produced results very different from those the ruling class envisions, that class explains defeat in terms of its most fundamental animosities—toward its domestic competitors.
Thus as the Afghan Taliban celebrated with the armament the ruling class left behind for them, making them the world’s fourth best armed force, our ruling class turned to its next primary objective.
Treating the American people, especially conservatives, as the main threat results from the growth and clarification of attitudes endemic to Progressivism and already translated into policy and lack thereof by such luminaries as Dean Acheson, William Fulbright, Robert McNamara, Jimmy Carter, Anthony Lake, (Obama’s original mentor on national security,) and even by Henry Kissinger. Many among them identified with William Appleman Williams’s thesis (The Tragedy of American Diplomacy, 1959) that America was on the wrong side of the Cold War. America’s defeat by foreigners does not threaten these progressives’ prerogatives and identities as do their domestic rivals.
Blaming domestic rivals to deflect defeat’s consequences in foreign wars is all too usual. Nevertheless, statements by Joe Biden’s Secretary of Defense Lloyd Austin and Joint Chiefs Chairman Mark Milley that “domestic extremists,” whom they functionally define as whomever opposes the ruling class, pose the greatest danger of terrorism—especially if they are white—is egregious in history. The official reorientation of the U.S. armed forces’ focus on fighting what is arguably the American people’s majority, is even more so. A grassroots progressive group called the Democratic Coalition leaves no doubt about the ruling class’s 2021 practical agenda: “we cannot rest until all of Trump’s traitorous, insurrectionist foot soldiers face justice.” Insofar as they are serious, and even if they are not, this augurs civil war.
How did this happen?about:blank
Having blurred the distinction between peace and war ab initio, and caring less than they should about national integrity, the ruling class never saw terrorism as war—as anything that should interfere with their agendas. But there is no such thing as a small war, any more than a small pregnancy. All war, all political violence, is about whether a body politic lives or dies. No post-9/11 statement is more mistaken than that these attacks “changed everything” in America. On the contrary. They accelerated the growth of trends deeply rooted in the ruling class.
The ruling class’ blurring of distinction between peace and war had already disposed it to tolerate what Kamal Nasser and the PLO were doing to Israel and what the Soviet Union was doing all over the world. Were we not doing similar things in the Cold War world? Well, not really. Our national security establishment relished the game, but was neither authorized nor ready to play the indirect-warfare game for blood. They had few if any independently recruited foreign sources. The closest they came to the game was in supporting the likes of Saddam Hussein and Fidel Castro, neglecting that these had their own agendas.
Besides, in the 1960s it was all too easy to turn a blind eye to the airplane hijackings, bombings, and bank robberies that Americans in league with Castro and the Soviets were perpetrating in the United States. But as America’s acceptance of defeat in Vietnam loomed, the terrorist threat increased. By the mid-1990s, after the U.S. government had misfired in Iraq, it was becoming hard to ignore.
Why Should a Little War Interrupt Their Good Time?
The ruling class’ first and enduring reaction to 9/11 was to safeguard its relationships with the “Third World” operatives in whom it had invested so many hopes, and in whose support and management its members were spending billions of dollars and and reaping millions. That is why when the American people demanded the heads of everybody and anybody who had a hand in terrorism, it was essential for CIA director George Tenet officially to identify the terrorist problem with one man, one organization, and with non-political religious zeal. The point was: don’t even think of fighting against anyone else.
And, within the ruling class, all rejected even considering “Why have we Americans been targeted more and more by all manner of terrorists? What must we do to put a stop to that?” “Whoever suggests that we hold foreign governments responsible for inciting violence against Americans wants war with the world. Can’t have that.” That is why, in the aftermath of a defeat that indicts the whole class’ conception and execution of policy for two decades, the lead editorials of the leading establishment publications, the New York Times and the Wall Street Journal pleaded: “We don’t recall good alternatives being offered over the last 20 years.” Correct! Groupthink stood guard lest reality intrude.
Calling what happened next “strategy” does violence to the English language and to whomever cares to peruse the newspapers circa 2001-3, which reported who in the government’s various parts and among their supporters wanted to do or not to do, plus what labels they might use and what information should be withheld to manage public opinion. But you will search in vain for any discussion of why so many people in so many places were finding it attractive to kill Americans, and how we might make it unattractive.
Instead, the U.S. government/ruling class wanted to get closer to foreign countries to improve them and their attitudes, and it wanted to impose restrictions on Americans. Because that is what it always wanted and did whenever it could. Avenging 9/11 and preventing its recurrence served as justification for putting enormous effort and money into unrelated or even counterproductive activities the ruling class sold to Americans as antiterrorism. about:blankabout:blank
The force behind these absurd-on-their-face, focus-grouped sales pitches came from the unanimity and lack of discussion with which the ruling class media pushed them. Twenty years later, the same media repeated the same tropes as if events had confirmed them. The Wall Street Journal editorialized that the occupations of Iraq and Afghanistan had “largely succeeded” in keeping the terrorists “on defense so they found it harder to attack us at home.” A few days earlier Condoleezza Rice, as responsible for these occupations as anyone, had written that “We took the fight to the terrorists so that they could never again bring it home to us.”
On what planet? Afghanistan and Iraq were awash in ethnic militias intent on oppressing or killing one another. Few of the combatants had ever heard of the United States. But our ruling class wants us to believe that hatred for America had so crazed them that, instead of slipping across our porous borders and feasting on undefended civilians, they threw themselves at the U.S armed forces in their country. They really think we are stupid.
Cui Bono?
Estimates of the “War on Terror’s” cost in money start at $8-10 trillion. Cui bono? To whom did that money go? Yes, millions, maybe even billions, went to rent the cooperation of Iraqis, Afghans, etc. But the trillions went chiefly to Americans—to the national security establishment; the armed forces and intelligence community, for enhanced careers and operations, and to their contractors; plus to the horde of civilian specialists employed to improve health, education, welfare, and social practices in foreign lands; our transportation network; and all manner of manufacturing and servicing. The consultant class also took it to the bank, and the people who run the conferences.
Think of all the reputations, careers, retirements on the golf course, second homes, fancy cars and vacations all this made possible.
Think also of how fast and far the “War on Terror” advanced the ruling class’ perennial objective to limit the freedoms of Americans outside its orbit, and perhaps shut down domestic opposition. about:blank
When leftist Americans (alumni of Americans for a Democratic Society, a covert CIA subsidiary) hijacked airliners to Cuba, the ruling class would not hear of ending the problem by forcing Castro to give them up. Instead, they made it a crime for ordinary air travelers to defend themselves. After 9/11, the Department of Homeland Security set about establishing a new way of life in America, based on badges and regulations about what clearance would be needed to go where. The ruling class cares nothing of their effect (or, overwhelmingly, the lack thereof) on terrorism, just as it does not care what effect its shifting, contradictory mandates concerning COVID have on public health. And it does not even try to explain how adding minuscule amounts of CO2 to the atmosphere adversely affects the planet’s climate. No. The ruling class takes any and all occasions to advance its overriding objective in its own domination.
Terrorism, however, is especially useful. The premise that since we cannot know who is most likely to pose threats, that hence we must refrain from focusing on (profiling) Muslims and assume that the folks next door are as capable of mayhem as anyone shouting Allahu Akbar, has done much to make America what it is today. Especially because it is an in-your-face lie. The lie serves to free the ruling class to absolve or indict for terrorism whomever it chooses.
Surprise, surprise! Turns out that not everyone is as likely a source of terrorism as anyone else. The real, congenital, terrorists are conservative white folks. U.S intelligence properly profiles them to prevent the worst of them from taking part in society. And if anyone suggests that this relates to the fact that these white folks don’t vote for the Democratic Party, the Wall Street Journal tells us that the U.S. justice system is fair and competent: “The privacy of Americans hasn’t been threatened, while the Patriot Act has provided the feds with tools to break up domestic terror cells.” You must believe that, or else!
That is why the New York Times formulated the “War on Terror’s” official epitaph: “A War on Terror Accounting Since 9/11. The fall of Kabul shouldn’t obscure the successes over 20 years. Experts say it is the success of a multilateral effort that extends to as many as 85 countries.”
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About Angelo Codevilla
Angelo M. Codevilla is a distinguished fellow of the Center for American Greatness. He is professor emeritus of international relations at Boston University and the author of To Make And Keep Peace (Hoover Institution Press, 2014).ArchivePhoto: Morteza Nikoubazl/NurPhoto via Getty Images
Content created by the Center for American Greatness, Inc. is available without charge to any eligible news publisher that can provide a significant audience. For licensing opportunities for our original content, please contact licensing@centerforamericangreatness.com.
[Mostly agree. Would point out that Col. Petrokhin, KGB, in a history of the KGB, “The Sword and the Shield,” the KGB had a significant role in fostering and growing the SDS and other Viet Nam era leftist groups and activities. A point to make on cui bono, who has profited from all of the social welfare programs since 1967? Certainly the people of South Chicago have not benefited from the 3+Trillion Dollars spent there on their behalf, nor those in Queens County NYC nor Los Angeles County in CA. Note how Jeremiah Wright, a ‘Christian’ minister, ended up with a ten million dollar pension and a house on a golf course on the North Shore of Chicago. And, so it goes … .
Poke through the blog, check out the post on the Q’Ran, on secession, and the one on the inbreeding of Muslims and how it has affected the various European national healthcare systems, to which Obamacare is heading us.]